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JayMart to open 45 new stores in bid to grow revenue by 35%

Mobile-phone retailer JayMart Group has set aside an investment budget of Bt1.76 billion, partly to open 45 new stores and renovate 36 existing ones in an effort to boost revenue by 35 per cent this year to Bt12.5 billion, group chief executive officer Adisak Sukhumvitaya told a news conference yesterday.

The company's subsidiary JMT Network Services also targets revenue of Bt495 million, while JAS Asset Co aims for Bt470 million.

Adisak said Bt430 million of the investment budget would be used to open new stores and renovate old ones, as well as for promotional events and IT Junctions. The next Bt700 million will go to JMT Network Services, an asset-management firm. The remaining Bt630 million will be invested in JAS Asset Co, the group's property arm.

More than half of the investment amount will be borrowed from commercial banks, and the rest will come from the company's cash flow, he said.

JayMart will increase the number of stores from 255 to 300 nationwide this year. This is expected to boost its revenue by 35 per cent and net profit by 25 per cent compared with last year. The group reported revenue of Bt7.3 billion and net profit of Bt277 million in the first nine months of 2013.

"We believe that the political strife should die down by the end of the first quarter, so there should be no problems meeting our growth target this year," Adisak said. "In the worst-case scenario, profits will grow by 20 per cent instead of the targeted 25 per cent."

However, he acknowledged that the company had contingency plans to fall back on if the political chaos lasts longer than expected or if violence erupts.


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